President Yoon Suk Yeol stated on November 13 that he will make greater efforts to normalize the capital markets, emphasizing that necessary measures will be taken, whether through legislative or administrative actions, or by revising exchange operating rules.
During a policy meeting on capital markets titled "Building a Trusted Capital Market: Seeking Answers from the Field" held at the Korea Exchange in Yeouido, Seoul, President Yoon reiterated his commitment to firmly pursue capital market normalization and swiftly complete institutional reforms to restore market confidence.
In his closing remarks, he noted that the causes of the domestic stock market's undervaluation, attributed to industrial and economic policies as well as geopolitical risks, have significantly improved. However, he diagnosed that issues related to market transparency and corporate governance remain unresolved. He called for an expansion of the financial supervisory authorities' powers and personnel, and for swift legislative action to ensure respect for shareholders and enhance management transparency and rationality.
"We will expose all issues and rationally devise and implement solutions to address them," President Yoon stated, adding, "I will personally oversee the swift completion of these efforts."
About 80 participants attended the meeting, including government officials, lawmakers, representatives from the Blue House, the financial investment industry, corporations, institutional investors, and experts.
In his opening remarks, President Yoon assessed that the recent significant adjustments in the stock market have once again put the government's commitment and policies for capital market reform to the test. He emphasized that capital market normalization is a firm policy direction and commitment of his administration, stating, "There is no doubt about this."
He described the reality of undervalued stocks simply because they belong to South Korean companies or are listed on the domestic stock market as "an extremely unreasonable abnormality." He asserted that normalizing these abnormalities is a core task for his administration, stating that the normalization of asset and financial markets is something the government must and can achieve.
Regarding unfair practices such as stock manipulation, he mentioned that he has already instructed the Serious Crimes Investigation Agency to strictly crack down on unfair activities in the financial and capital markets.
During the meeting, discussions focused on topics such as expanding shareholder-centric management and enhancing corporate value, redesigning the venture investment ecosystem and the KOSDAQ market, and increasing long-term and institutional demand in the stock market.
Discussions included the buyout ratio and allocation method of the mandatory public offering system, activating hostile mergers and acquisitions (M&A), delisting companies with excessively high major shareholder ownership, and strengthening investor relations (IR) while utilizing long-term investment tax benefits and the securities market stabilization fund.
On the mandatory public offering system, opinions diverged between a 100% buyout plan for shareholders wishing to sell and a plan to buy only 50% plus one share of the total issued shares. President Yoon conducted a show of hands among attendees and checked the reactions of live-stream viewers on YouTube.
He stated, "Even if I face criticism, I believe that expanding the pie and activating M&A to normalize the entire market will benefit all shareholders," while also calling for additional feedback. He instructed a review of exit strategies for listed companies that operate like personal companies due to excessive major shareholder ownership.
Regarding the KOSDAQ market, he ordered the swift application of delisting criteria for underperforming and weak companies, ensuring that firms with technological capabilities and growth potential are not adversely affected, and called for a comprehensive review of the entry, exit, and evaluation systems. He also directed that conditions and methods for the immediate operation of the securities market stabilization fund be examined.
During the discussions, President Yoon also instructed the formation of a high-level body dedicated to capital market reform. He suggested creating a separate task force for capital market advancement and reform, emphasizing the need for a horizontal organization that engages in vigorous discussions on equal footing rather than a conventional discussion structure. He directed that contentious issues be organized and reported directly to him.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.